𝐂𝐨𝐦𝐦𝐞𝐫𝐜𝐢𝐚𝐥 𝐑𝐞𝐚𝐥 𝐄𝐬𝐭𝐚𝐭𝐞 𝐒𝐞𝐜𝐭𝐨𝐫 𝐚𝐧𝐝 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐒𝐭𝐫𝐮𝐠𝐠𝐥𝐞 𝐏𝐨𝐬𝐭 𝐏𝐚𝐧𝐝𝐞𝐦𝐢𝐜 𝐀𝐦𝐢𝐝 𝐒𝐥𝐨𝐰 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐑𝐞𝐜𝐨𝐯𝐞𝐫𝐲

… 𝒄𝒉𝒂𝒍𝒍𝒆𝒏𝒈𝒆𝒔 𝒎𝒐𝒖𝒏𝒕 𝒂𝒔 𝒆𝒄𝒐𝒏𝒐𝒎𝒊𝒄 𝒓𝒆𝒄𝒐𝒗𝒆𝒓𝒚 𝒍𝒂𝒈𝒔 𝒃𝒆𝒉𝒊𝒏𝒅 𝒆𝒙𝒑𝒆𝒄𝒕𝒂𝒕𝒊𝒐𝒏𝒔

By Kezang Choden

Before the COVID-19 pandemic, businesses and the real estate sector were thriving. However, since the pandemic began, there has been a noticeable downturn in operations, which has only worsened over time. This extended crisis has led to a gradual slowdown in real estate activities, making it increasingly challenging for many businesses to conduct transactions. Some businesses have gone months without finalizing any deals.

The global economic impact of the pandemic has added unforeseen challenges, creating economic hurdles. These difficulties have prompted many individuals to consider opportunities abroad, diverting potential investments and contributing to inflation.

In this post-pandemic economic environment, businesses across sectors are feeling the effects of a shrinking market. Decreased client and customer numbers have become a common concern, with many struggling to cover operational costs, overhead expenses, and office rent. This strain is especially felt in the commercial real estate sector, where business activity has slowed significantly.

The combination of global economic pressures, shifts in investment patterns, and rising costs has created widespread economic stress for businesses, highlighting the need for strategic measures to navigate these challenging times effectively.

Dhan Raj Rai, Proprietor of T-Rank, expressed, “My business was thriving before the pandemic struck. However, due to COVID-19, the global economy took a severe hit, and Bhutan’s economy was no exception. Everything changed post-pandemic, with the economy experiencing a downturn and people opting to move abroad, leading to a decrease in cash flow within the country.”

Rai noted, “Today, there are more sellers than buyers, and most people prefer commercial areas over residential ones. Despite my hard work, I haven’t been able to revive my business to its pre-pandemic levels, making the current situation very challenging.”

He added that due to the downturn in business, he hasn’t been able to expand his operations.
Similarly, Kezang Tashi, the founder of Yellow Real Estate, stated that managing his business has been challenging over the past few months as he continually strives to improve his work. He observed that all the problems arose due to COVID-19 and primarily because people have been leaving the country after the pandemic.

He explained, “Many landlords are selling their properties, leading to an increase in the number of sellers. We have been witnessing the emergence of many competitors now. Sadly, the little income that we earn is often insufficient to cover staff salaries, resulting in economic consequences at home.”

Tashi highlighted that many real estate firms were experiencing cash flow shortages, impacting their workforce. Additionally, numerous enterprises had to shut down due to the effects of Covid-19 and people leaving the country.
Ram Gurung, the owner of Kingdom Real Estate, shared that he has been running his real estate business for almost one and a half years now. He noted, “Currently, everyone is eager to sell but forgets about buying.” He highlighted how the conditions before and after COVID-19 have changed dramatically. Before the pandemic, he used to earn a good income and profit. However, due to people pursuing for leaving the country, there are now more sellers than buyers in the market.

Gurung mentioned that the profit margin has significantly decreased compared to a year ago. He emphasized the need for a proper platform and innovative ideas to revitalize their business to its previous level of success.
Another real estate firm confirmed that their business has been affected post-pandemic. The spokesperson stated, “I remained optimistic that the government would take the necessary steps for the speedy recovery of the country’s economy, as has been done in other parts of the world where economies have bounced back. However, I am losing confidence; not only in our economy’s recovery but also in the worsening situation we are experiencing. I hope the government understands the severity of our situation and takes it seriously.”

He also mentioned that the business slowdown isn’t limited to the real estate sector but is also affecting other industries. Clients and customer numbers have shrunk, and there’s a noticeable reduction in the market size across the country.

Karma Tshering, a father of a graduate, expressed, “I had planned to buy an apartment for the family as we approach retirement age. However, when my son expressed his desire to pursue a master’s degree abroad, I had to abandon the idea and invest in his education.”

He further explained, “I had already negotiated with the agent regarding the payment terms for the apartment, but my son’s future is more important.”

The sluggish pace of economic recovery has manifested in various ways across sectors, from the commercial real estate sector struggling with vacancies and reduced demand, to businesses facing challenges in sustaining operations and retaining employees. This has led to a cascading effect on employment rates, with job opportunities remaining scarce and income uncertainties amplifying financial insecurities for many households. Additionally, the lack of concrete government plans and measures has further exacerbated these challenges, leaving businesses and individuals without clear guidance or support to navigate the ongoing economic downturn.